Well I haven't watched the video since it's like an hour long but from what I can remember Nintendo wasn't happy with the deal that was going on with Sony. So they went behind Sony's back and worked up a new deal with Phillips. Sony went on to CES and introduced the Nintendo Playstation thinking everything was fine. And the next day Nintendo announced they were dropping the Playstation and working with Sony rival Phillips instead. Sony was so angry over how Nintendo fucked them over that they decided to enter the console market and take on Nintendo. They then went on to crush Nintendo with the Playstation. Pretty good revenge story.
It's funny to me in the midst of a lot of affectionate usage of the "in Japanese culture honor and shame are huge parts of it" meme on GAF, the entire Nintendo and Sony situation that happened went along those lines note for note.